Crowdfunding legislation in the General Assembly remains in limbo but the House does appear to be moving ahead on the establishment of a new venture capital fund that could provide North Carolina startups with an infusion of cash.

WRAL’s Mark Binker tells WTW that there appears to be nothing new on the crowdfunding front even though a new law that would enable more investors to put cash into emerging firms has bipartisan support.

On the venture front, a $40 million state fund moved forward in the House on Wednesday.

“It’s in the House budget, and will presumably stay there,” Binker says.

But even if approved by the House, there are no guarantees it will become law.

“Who knows if the Senate will go along,” Binker says.

The venture fund, crowdfunding and revisions in state incentives for job creation are all being pushed by Gov. Pat McCrory. Yet as the General Assembly session drags on, a rapid resolution to any of the three issues doesn’t appear to be in the cards. (See WTW’s editorial: CEOs want N.C. but does General Assembly want CEOs?

But there has been some progress toward providing N.C. entrepreneurs access to investment capital, which remains scarce. Just last month, N.C. State Treasurer Janet Cowell also set up a second “Innovation Fund” worth $250 million.

Even as the venture fund advanced, Binker reported for WRAL the debate continued.

How to fund it?

Here’s how he summed up Tuesday’s happenings:

“In the original draft of the budget, House lawmakers would have set aside $40 million in taxpayer money for a new venture capital fund favored by Gov. Pat McCrory. Changes approved Wednesday say that, instead of tax dollars, that fund will now be fueled by North Carolina’s escheats fund.

“The escheats manages property that is held by the state when it is lost by, or abandoned by, its original owner. These are bank accounts, utility refunds, tax refunds and the like for which a company or government agency can’t find the rightful owner. The money is held in trust until that owner is identified. The interest earned on escheats goes to fund scholarships for low-income students.

“Language calling for the use of the escheats fund was approved by McCrory’s office as well as the Office of the State Treasurer, but some members of the committee objected both to how the money was being used as well as where it comes from.”

As Binker pointted out, the venture fund isn’t a slam dunk for launch even if the General Assembly approves it and McCrory signs off.

“That $40 million investment would attract $80 million in private capital, all of which would be managed by a new nonprofit committee. Some of the directors of that committee would be appointed by the governor, the treasurer and lawmakers.”

Read more from Binker at: http://www.wral.com/final-n-c-house-budget-tune-up-tweaks-renewable-energy-venture-fund-provisions/14658502/